ForexGen | Forex Traders Advantages

ForexGen serves all types of traders in the market. This service is done through ForexGen multiple accounts or ForexGen online academy, in which there are many levels that fit all traders. In my opinion it is those traders who are based in the UK that have an advantage over those traders from the rest of the world.

Why is this? Well there are a couple of reasons why this is the case. The first reason is because in my experience the opening hours of the London session is the most profitable period of the day (by far). I've been trading for a number of years now and have come to realize that if you\'re trading one of the major pairs, particularly the British and European-based currency pairs such as the GBP/USD and the EUR/USD, then this is the most productive period to trade.

In the morning session United Kingdom Forex the major currencies tend to trend strongly in one direction over the shorter time frames so making money from these trends is a lot easier. Furthermore there are far less distractions because apart from the occasional UK or European news release, there are few economic data releases to move the markets, so you can concentrate fully on technical analysis.

Therefore because this session is arguably the most profitable, it is this Forex trader United Kingdom Forex (and indeed Europe) who benefit the most because this period is a very convenient time to trade. Unfortunately it is not so convenient for US-based traders, for instance, to trade the opening hours of the London session because it is the middle of the night for them.

The other main reason why United Kingdom Forex has an advantage is because not only can they open an account with a conventional Forex broker, like everyone else, but they can also make use of spread betting as an alternative trading vehicle. This is much the same as trading through a broker except for one key difference. Any gains made from Forex trading through spreadbetting are completely tax-free (at the time of writing, future tax laws may change). Therefore United Kingdom Forex can make as much money as they want from Forex trading, even if it\'s their full-time job, safe in the knowledge that not a penny of those gains will be going to the tax man.

So as you can see United Kingdom Forex are definitely at an advantage when it comes to Forex trading because they have the option of trading tax-free and can trade the highly profitable opening hours of the London trading session.

Why Trade Forex? | ForexGen

Online equities and futures trading have enjoyed exponential growth and widespread notoriety over the past few years in Asia; online currency trading is only now gaining popularity among active traders. Until recently, large international banks dominated the foreign exchange (FX or Forex for short) market, only allowing access via telephone trading to a select few such as large Multi National Corporation, high-net worth individuals, and so on. But now, the tide has turned and finally there are established online trading firms that provide individual investors with direct online access to the largest, most liquid financial market in the world.Trading opportunities in the Forex market deserve serious consideration as a diversification strategy for your portfolio. Only few traders consider expanding into Forex. Why? The reason may be in the simple fact that in Asia, investors tend to be underexposed to foreign exchange. Unfamiliarity typically breeds misconceptions, and foreign exchange in Asia is no exception.Forex a Risky Business?Is Forex as risky as everyone thinks? One way to measure risk is to compare a financial product's risk/reward ratio. If you take the time to compare an investment in Forex to common investments such as equities and fixed income, you will find that from a risk/reward standpoint, Forex investments provide respectable returns and should be considered a viable portfolio diversification tools.As you can see the claims on some Forex web sites, implying that FOREX is a risk-free pastime. No investment is risk-free.In Forex you are trading substantial sums of money, and there is always a possibility that a trade will go against you. With essential education, Forex trader can learn how to trade profitably and minimize losses.Common Misconceptions of ForexMany investors unfamiliar to Forex market may have some misconceptions about the Forex market. One of the most common myths interprets Forex trading as a higher risk component than other investment alternatives. All financial markets involved risks, and only with substantial level of education you are able to minimize the risks and profit consistently.The Forex market is like any other financial market and technical analysis does translate well into Forex. Many technical indicators that are used in other financial market can be apply and profit from the Forex market.ConclusionOf the more than one trillion dollars a day transacted in the Foreign exchange market, an estimated 95% comes from speculative trading. While large international banks are responsible for the majority of this volume, there are retail investors all over the world trading Forex on a daily basis. Without a doubt, investors in the US are behind the curve with regard to learning about and participating in this market. Active traders who appreciate liquidity, strong technical indicators, and a multitude of short-term trading opportunities will find the Forex market especially appealing. But at the very least, trading the foreign exchange market deserves serious consideration as a diversification strategy in anyone's portfolio.

ForexGen Identifies the Market Trend

Technical Analysis: Identify the Market Trend - Forex Trading

Technical Analysis: Identify the Market Trend
A trend represents a general direction of the market. Dow Theory asserts that major trends have three distinct phases: accumulation, public participation and distribution. The accumulation phase represents the first part of the trend in which those who are well-informed buy or sell. In other words, if the well-informed recognize that the recent downtrend is soon coming to an end, they would buy, and vice versa.
The public participation phase involves the masses following the major trend. This occurs as prices begin to accelerate rapidly and there is news supporting the trend.
The final distribution phase occurs as the news highly favors the current trend and speculative volume and public participation increase even further. At this point, the well-informed investors who accumulated when the market was at its peak (trough) begin to sell (buy) before other investors begin to follow suit.
This is a major theory that essentially mirrors the physical law stating that an object in motion tends to continue in motion until some external force causes it to change direction. Relating that principle to price trends, a strong trend will tend to continue in its current direction unless there is a price reversal indication, as per technical or even fundamental analysis. The later articles will focus on learning to spot reversals in the market and how traders can place orders to take advantage of such reversals.